Bitcoin, Ethereum, and major indices such as the S&P 500 and Nikkei 225 posted their worst quarterly performances in over three years. This is largely due to global trade policy changes expected to be announced today by President Donald Trump.
Market Downturns and Trade Tariffs
Today, President Donald Trump will announce new trade tariffs affecting several countries. Sid Powell, CEO of Maple Finance, noted that the decision could have varying consequences. Concerns over high tariffs are keeping investors away from risky investments.
Crypto Market Impact Analysis
Research analyst Nicolai Sondergaard from Nansen believes that the tariff strategy could influence seasonal trends in the second quarter. He added that the U.S. administration is likely moving towards a more bilateral approach, reducing the risk of a trade war.
Fed Actions and Macroeconomic Consequences
Investors expected rate cuts in 2025, but uncertainty surrounding Trump's trade policy has delayed clear guidance from the Fed. Sondergaard emphasized that while quantitative tightening has slowed, it does not indicate a complete policy shift from the Fed.
Future trade decisions and Fed policy play a key role in determining the direction of the markets, including cryptocurrencies. Uncertainty remains, but a gradual move towards softer measures could indicate stabilization.
